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Title: Argentina Blew A Billion Dollars To Rescue The Peso On Friday... And Failed Post by: Hydrogen on June 30, 2018, 09:45:45 PM Quote The last 24 hours have not been great for Argentina. First - despite endless jawboning about The IMF bailout and how it will secure the nation's future and enable reforms, the currency collapsed to a new record low on Friday... https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-06-30_9-20-06.jpg Second - the central bank decided to step in with their newly minted IMF funds and blew over a billion dollars to buy pesos, managing a very modest bounce (but ARS still closed down 3% on the day) https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-06-30_8-58-47.jpg Third - IMF officials spoke with Argentina's union leaders, warning of the social impact of the ongoing disruptions. Quote IMF spokesman Raphael Anspach confirmed Werner and Cardarelli’s participation in the call, which “reiterated the main elements of the IMF support to the government’s economic plans, including the measures aimed at supporting the most vulnerable in Argentine society.” And union officials told the media that The IMF was not worried about the ongoing collapse: Quote "They are betting on a virtuous behavior by private investors, with the economy falling in the third and fourth quarters of 2018, but rebounding 1.5% in the first quarter of 2019" "They were not worried about the flight of capital" Fourth, and finally, and perhaps worst of all - Argentina is now out of The World Cup https://www.zerohedge.com/news/2018-06-30/argentina-blew-billion-dollars-rescue-peso-friday-and-failed-and-now-theyre-out Yet another unfortunate fiat currency appears headed the way of venezuela's bolivar. Not certain if we'll see the "blame diminishing value of oil for diminishing value of currency" angle in this instance. All over the world it seems as if fiat currency devaluation and hyperinflation are becoming more tangible and credible threats. Meanwhile the mainstream media stays silent and whispers nothing. Sadly these negative circumstances make it likely argentina will embrace crypto currencies similar to how venezuela has embraced crypto in the face of its hyperinflationg fiat currency. Some argentine banks currently utilize bitcoin for cross border payments: https://cointelegraph.com/news/argentinian-bank-now-using-bitcoin-for-cross-border-transactions With fiat currencies performing poorly in recent times, perhaps we have one of the best indications for why bitcoin is not a bubble and why we could still see crypto hit all time highs before 2018 ends. Title: Re: Argentina Blew A Billion Dollars To Rescue The Peso On Friday... And Failed Post by: richardsNY on June 30, 2018, 10:53:47 PM I'm actually interested to hear from people there what their stance is in this case. It's easy for everyone here to just say hop in Bitcoin and your problems are solved, but we don't know how easy or difficult that is for the average person there. There are so many variables involved that things aren't as easy as we think they are. Sure, some individuals will take the necessary steps to reduce their exposure, but it's always the mass that ends up swallowing the losses. On top of that, the average joe mentality towards crypto is mostly only focused on the speculative aspect -- decentralization and hedging fiat doesn't even exist in their dictionary.
Title: Re: Argentina Blew A Billion Dollars To Rescue The Peso On Friday... And Failed Post by: 1Referee on July 01, 2018, 09:10:21 AM I find it horrible for the people suffering from this and I wish them nothing but the best, but it actually feels good knowing that it will only help Bitcoin become more of a powerful tool.
Bitcoin is actually nothing more than a reflection of how bad this system functions. People keep calling Bitcoin a bubble because of how it keeps growing, but they fail to understand that Bitcoin growing, especially in the long term, means that the current system is imploding. If Bitcoin's market cap at some point surpasses Gold, then the system is the only one to blame. If the world was a nice place and everyone had equal rights and financial freedom, Bitcoin would be near useless. If governments want to combat Bitcoin effectively, they should try to actually force through improvements and make people suffer less from their incompetence. Anti regulations won't do it. |
